Deere & Company (DE) Announced Q3 2026 Earnings on August 20, 2026, Reporting "Net sales and revenues were up 5% to $12.608 billion" for the third quarter

For the third quarter of 2026, Deere & Company reported that "Net sales and revenues were up 5% to $12.608 billion, and net sales for the equipment operations were up 6% to $10.999 billion" for the third quarter.Net income attributable to Deere & Company for the quarter was "$1.379 billion" or "$5.10" per diluted share, while the equipment operations achieved a "14.4% operating margin" for the third quarter. By segment, Production and Precision Ag net sales "of $3.998 billion" were "down 6%" compared to the third quarter last year, with a "13.2% operating margin" for the segment for the third quarter.Small Ag and Turf net sales were "up 12% year-over-year, totaling $3.383 billion in the third quarter" with an "18.4% operating margin" for the segment for the third quarter.Construction and Forestry net sales "for the quarter were up 18% year-over-year to $3.618 billion" with a "12.1% operating margin" for the segment for the third quarter.The results also included "$110 million" of incremental refunds in the third quarter, meaning total refunds recognized in fiscal year 2026 now stand at "$382 million."Management shared key updates on inventory health and technology adoption. In North America, new inventories are well positioned, with model year 2023 and 2024 high horsepower tractors down "nearly 40% from a year ago." In Precision Ag, customers are adopting advanced technologies, as early order program trends suggest "factory adoption of See & Spray will nearly double with the technology included on about 1/3 of North American sprayers on order." Furthermore, Deere is seeing "more than 40% of North American planters, including our next generation of advanced offerings such as ExactRate, ExactShot and FurrowVision." The digital ecosystem continues to expand, with "more than 520 million engaged acres across nearly 1.2 million connected machines." In Construction and Forestry, "Factory installed SmartGrade adoption has increased more than 50% year-to-date" and "sales of our job site safety solutions have increased nearly 40% year-over-year."Regarding forward guidance, the company improved its outlook for the full fiscal year 2026.Management raised its net income forecast "to a range of $4.75 billion to $5.00 billion" for the full fiscal year 2026 and improved its cash flow expectations from equipment operations to "the range of $5 billion to $5.5 billion" for the full fiscal year 2026.The full year forecast incorporates "an effective tax rate between 24% and 26%" for the full fiscal year 2026. By business segment, full year net sales for Production and Precision Ag are expected to be "down approximately 10% for the year," with an operating margin "between 11% and 12%." Small Ag and Turf full year net sales are expected to be "up approximately 15% for the full year," with an operating margin "between 14.5% and 15.5%." For Construction and Forestry, full year net sales are expected to be "up approximately 20% for the full year," with an operating margin "between 10.5% and 11.5% for the year." Additionally, the full year net income outlook for Worldwide Financial Services increased to "$870 million" for the full fiscal year 2026.Deere also provided updates on its product lineup and digital partnerships.Management discussed the ongoing rollout of its "Deere-designed excavator," noting they have "3 models in the market today" and are "eager to get to more of these in the hands of -- more of these at the job site." The company continues to drive the "expansion of our digital ecosystem with solutions like Tenna" and highlights "John Deere Operations Center PRO Service" as a tool that enables customers to "have access to diagnostic tools, digital manuals" and "do software updates on their own." Looking broadly at the market cycle, executives reiterated that they "continue to believe that 2026 represents the bottom of the ag equipment cycle."